Strategic use of debt in Flemish municipalities

Korte inhoud:This paper discusses the literature on strategic use of debt models and empirically tests the seminal models of Persson & Svensson (1989) and Alesina & Tabellini (1990) on a dataset of Flemish municipalities. The literature on strategic use of debt originates from the question whether incumbent policy makers increase debt if they expect an electoral defeat. We introduce a vote function to estimate the probability of electoral defeat and present evidence of strategic debt in line with Persson & Svensson (1989), but only for leftist governments expecting to be replaced.

Jaar van publicatie:2010

Trefwoorden:business, economics, planning

BOF-keylabel:ja

IOF-keylabel:ja

CSS-citation score:1

Auteurs:National

Authors from:Higher Education

Toegankelijkheid:Closed